Higher taxes led to a more equitable distribution of wealth
Jumped the Shark
The largest reason for the economic boom was female participation in the labor force
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E Jay Chavez Nov 20, 2012
No, high taxes did not bring about the boom. Hi taxes were insulated by WWII and the destruction of much of the developed world. Much like today's spendthrift leaders/money printers are insulated by turmoil around the world. The least dirty shirt helped drive growth, despite high taxes.
Luis Perez Jan 09, 2013
I completely agree, the US found itself after WWII with a world economy in shambles and one in which they were able to be very competitive and grow.
Luis Perez Nov 20, 2012
Prior to WWII female participation in the labor force was very limited. In essence 50% of the population! However, this changed quickly during and after WWII, bringing to the economy a section of productive workforce.
Celeste Drake Nov 20, 2012
That's actually not true. Women did not enter the workforce in significant numbers until after the women's movement--their number really started to grow during the 80s and beyond through today. However, by the 80s, the shared prosperity wave had peaked, union density was already falling, income inquality was already on the rise, and productivity had already begun to decouple from wages. Female participation in the labor force was in fact the only thing that allowed many families to reach or stay in the middle class -- as men's wages for many families were no longer sufficient to keep up the desired standard of living without the supplement of the wive's wages. It did not cause the post-war boom.
According to this report (http://www.ppge.ufrgs.br/giacomo/arquivos/eco02268/jacobsen-1999.pdf) female labor participation rate was ~20% in 1930. It rose to 50%+ by the end of the 1970's. From 1980 to the turn of the century it rose an additional 10% to about 60%, and it currently stands at about 58% (http://en.wikipedia.org/w/index.php?title=File:US_Labor_Participation_Rate_1948-2011_by_gender.svg&page=1).
Celeste, what would you say was the biggest reason for the boom?
Higher taxes led to a more progressive distribution of wealth which put money into the pockets of individuals with a high likelihood to spend.
Ana Luisa Dec 06, 2012
The economy should be left to run alone. When the gov't starts playing a big role in the economy all the right economic incentives are destroyed. Further, if the gov't only supervised that property, liberty and individually are maintained, then there would be no need to seek for a more equitable distribution of wealth, because by preserving these three fundamental human rights equality would be at its highest. Rather than focusing on making society equal, the gov't should focus on ensuring everyone's individuality, property and liberty are equally honored.
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